Mixed Market Economy?

[JK]

Why does the mixed market economy work and how? (any help for links also would be much appreciated!)

[Mike Beckett]

Free Market economies are by their nature amoral and therefore require regulation to be humane. Command Economies are planned in advance and are often insensitive and inflexible to changing circumstances, they also tend to be a disincentive to the populous. The mixed economy works as the least worst system balancing elements from both a command economy and a free market economy.

Mixed economy is an economic system in which both the state and private sector direct the economy, with regulatory oversight, and can consist of variety of cooperatives, collectives, private individuals, companies and/or autonomous state agencies that buy and sell capital goods with each other in a free price system.

Decisions regarding investment, production and distribution are based on supply and demand as is price, with the means of production usually in private ownership. The market is the dominant form of economic coordination with the accumulation of capital and profit as the incentive for economic activity. Government wields considerable indirect soft power influence over the economy and more hard power through fiscal and monetary policies that intervene to tackle issues like economic growth or lack of, financial crises, unemployment/ underemployment and social welfare.